Earnings Per Share

12 Months Ended

Dec. 31, 2013

Earnings Per Share [Abstract]

Earnings Per Share

4. Earnings Per Share

(PPL)

Basic EPS is computed by dividing income available to PPL common shareowners by the weighted-average number of common shares outstanding during the applicable period. Diluted EPS is computed by dividing income available to PPL common shareowners by the weighted-average number of common shares outstanding, increased by incremental shares that would be outstanding if potentially dilutive non-participating securities were converted to common shares as calculated using the Treasury Stock method or If-Converted Method, as applicable. Incremental non-participating securities that have a dilutive impact are detailed in the table below.

Reconciliations of the amounts of income and shares of PPL common stock (in thousands) for the periods ended December31 used in the EPS calculation are:

			2013		2012		2011
Income (Numerator)
Income from continuing operations after income taxes attributable to PPL shareowners			$	1,128	$	1,532	$	1,493
Less amounts allocated to participating securities				6		8		6
Less issuance costs on subsidiary's preferred securities redeemed						6
Income from continuing operations after income taxes available to PPL common
	shareowners - Basic			1,122		1,518		1,487
Plus interest charges (net of tax) related to Equity Units (a)				44
Income from continuing operations after income taxes available to PPL common
	shareowners - Diluted		$	1,166	$	1,518	$	1,487
Income (loss) from discontinued operations (net of income taxes) available to PPL
	common shareowners - Basic and Diluted		$	2	$	(6)	$	2
Net income attributable to PPL shareowners			$	1,130	$	1,526	$	1,495
Less amounts allocated to participating securities				6		8		6
Less issuance costs on subsidiary's preferred securities redeemed						6
Net income available to PPL common shareowners - Basic				1,124		1,512		1,489
Plus interest charges (net of tax) related to Equity Units				44
Net income available to PPL common shareowners - Diluted			$	1,168	$	1,512	$	1,489
Shares of Common Stock (Denominator)
Weighted-average shares - Basic EPS				608,983		580,276		550,395
Add incremental non-participating securities:
		Share-based payment awards (b)		1,062		563		400
		Equity Units (a)		52,568
		Forward sale agreements and purchase contracts (b)		460		787		157
Weighted-average shares - Diluted EPS				663,073		581,626		550,952
Basic EPS
Available to PPL common shareowners:
		Income from continuing operations after income taxes	$	1.85	$	2.62	$	2.70
		Income (loss) from discontinued operations (net of income taxes)				(0.01)		0.01
		Net Income	$	1.85	$	2.61	$	2.71
Diluted EPS
Available to PPL common shareowners:
		Income from continuing operations after income taxes	$	1.76	$	2.61	$	2.70
		Income (loss) from discontinued operations (net of income taxes)				(0.01)
		Net Income	$	1.76	$	2.60	$	2.70

(a)In 2013, the If-Converted Method was applied to the Equity Units prior to settlement.

(b)The Treasury Stock Method was applied to non-participating share-based payment awards, forward sale agreements and the 2010 Purchase Contracts for 2012 and 2011.

For the year ended December 31,PPL issued common stock related to stock-based compensation plans, ESOP and DRIP as follows:

(Shares in thousands)	2013
Stock-based compensation plans (a)		1,552
ESOP		275
DRIP		549

(a)Includes stock options exercised, vesting of restricted stock and restricted stock units and conversion of stock units granted to directors.

For the years ended December 31, the following were excluded from the computations of diluted EPS because the effect would have been antidilutive.

(Shares in thousands)	2013		2012		2011
Stock options		4,446		5,293		5,084
Performance units		55		58		2
Restricted stock units		29

See Note 7 for additional information on the 2011 and 2010 Equity Units, including the issuance of PPL common stock to settle the 2010 Purchase Contracts,the April and May 2013 settlements of forward sale agreements and information on the repurchase of shares of PPL common stock that offset the 2013 issuances of common stock under stock-based compensation plans, ESOP and DRIP.